NEW YORK, May 29, 2013 (AFP) – US stocks Wednesday closed lower amid concerns about global economic growth and the US Federal Reserve’s plans for unwinding its aggressive stimulus program.
The Dow Jones Industrial Average fell 106.59 (0.69 percent) to 15,302.80.
The broad-based S&P 500 gave up 11.70 (0.70 percent) at 1,648.36, while the tech-rich Nasdaq Composite Index dropped 21.37 (0.61 percent) to 3,467.53.
The losses came after the Organization for Economic Cooperation and Development trimmed its world economic growth forecast for 2013 to 3.1 percent from 3.4 percent.
Peter Cardillo of Rockwell Global Capital said higher US bond yields have also sapped the equity market of momentum. The yield on the 10-year bond, while slightly lower Wednesday, has crossed above 2.0 percent in recent days for the first time since mid-March.
Smithfield Foods surged 28.4 percent after announcing an agreement to be acquired by China’s Shuanghui International in a deal valuing the US pork and meat icon at $7.1 billion. If approved by US regulators, the deal would be one of the largest ever purchases of a US company by a Chinese entity.
In other merger and acquisition news, telecommunications firm Sprint Nextel and SoftBank received the green light for the Japanese telecom company’s proposed $20 billion takeover.
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